Difference Between Freehold And Leasehold Property In Dubai

Freehold VS Lease Hold Properties in Dubai

Freehold & Leasehold are two types of legal property ownership for ex-pats. If you’ve already made up your mind to purchase a property in Dubai then you must have to understand the difference as well as the advantages and disadvantages before taking any decision.

Freehold Property

Such type of property allows the owner complete ownership in Dubai. Once your name gets registered by the DLD ( Dubai Land Department) as the owner of the property and they grant you a title deed for the property from then on the property is in your name. And you can freely sell, and rent the property according to you.

Advantages 

• You’ll have full ownership or control over the property and need not seek anyone’s permission if you are making any renovation or some minor changes. But yes, if you are changing the façade of the property then you’ve to take permission from the respective developer.  
• If the freehold property value is above AED 1 million then the owner of the property and their families will be entitled to a renewable UAE residence visa.
• Suppose, the property owner passed away or there is no will found for the property in that situation the property will be straightly inherited by the family of the property owner. 
• You can sell or rent out the property at your own discretion.
• Foreigners can also buy freehold properties in Dubai.

Disadvantages 

• You can only buy properties from designated freehold areas in Dubai because there are limited options.
• These types of properties are completely liable and responsible on maintenance and structural repairs basis.
• It will increase your expenses, the annual maintenance charges bill will only belong to you.

Where can I buy freehold properties in Dubai?

There are multiple property options are available in Dubai. Always keep in mind that you can buy freehold properties in specific freehold areas in Dubai like Dubai Hill Estate, Downtown Dubai, Arabian Ranches and Dubai Marina.

Leasehold Property

Leasehold properties are lease based, where you are buying the property on lease from the owner of that property for a certain period (it can be 99 years or less). Buyers of such type of property can’t show ownership or even no rights to remodeling, repairment, alterations and whatever you want to do with the property. Buyers need to get permission from the property owner for doing such activities.

Advantages 

• There are various leasehold property options are available in different prices according to the area in Dubai.
• You (expat) can’t buy a freehold property in a non-designated areas.
• You don’t need to pay the property maintenance charges, it’s the landlord’s responsibility.
• Once the lease term over, it can be renewed.

Disadvantage 

• The property goes back to the owner once the lease is over.
• For any changes or improvements in the property, you need to take permission from the owner in writing.
• Subletting is not permitted in Leasehold property.

Where can I buy leasehold property in Dubai?

Dubai Silicon Oasis and Green community is the best place in Dubai where you can have multiple options for a leasehold property. There are also other places designated for a leasehold property, you can purchase from there also. You can choose an apartment or villa for leasehold option and it is entirely depending on you.

Dubai is a hot zone for investors across the world these days and there are various reasons behind it. The city is known for sky-piercing towers, luxury lifestyle and plenty of entertainment galore. The city is quite advanced in technology and it is always surprising with something unique like Palm Jumeirah Island – the first artificial island on earth shaped like a palm tree. 

If you’ll give a close look at this city you will understand there are plenty of opportunities that can make your life better as compared to other cities. From education to health service, career, lifestyle and business opportunities every field are well developed and one can set up their lifestyle forever in this city. I mean, no one would leave such a place where they are getting all these opportunities at a single address. So, whether you are living or investing you will enjoy endless benefits in return. 

Closure

This is the final crux between the two property types where you have seen a clear difference between freehold and leasehold. Besides this, each property has its own advantages and disadvantages, perks as well as benefits. 

After concluding both of them it becomes a foremost duty for the buyer to make a wise decision by evaluating its advantages & disadvantages and then be a part of the property that makes you proud every time in Dubai.